The Financial Industry Regulatory Authority has barred a former Merrill Lynch broker for pocketing $100 left by a customer in an ATM and then lying about it when confronted.
According to Finra’s letter of acceptance, waiver and consent, on Nov. 8, 2019, Michael Nagy was on a lunch break from his job at a Merrill Lynch affiliated bank when a customer handed him at least $100 in cash that a previous customer using the bank’s drive-up ATM had left behind and requested that he track down the customer and return the cash.
Upon returning to the bank following his lunch break, Nagy was approached by the bank manager about the cash left behind in the ATM, but he disclaimed any knowledge of the missing funds. The following week, Nagy found the cash in his suit jacket pocket and decided to keep the cash indefinitely rather than report it at that time, Finra said.
Nagy was found to have violated Finra’s Rule 2010, which “requires associated persons of Finra members to adhere to high standards of commercial honor and just and equitable principles of trade in the conduct of their business.”
Finra said it became aware of the matter from the Uniform Termination Notice for Securities Industry Registration (Form U5) filed by Merrill Lynch in Decmber. Nagy became associated with Merrill Lynch, Price, Fenner & Smith, Inc. (Merrill Lynch) in July 2017 when he entered the securities industry. He registered as a general securities representative and, also became employed by the firm’s bank affiliate later that year.
He was fired on Nov. 26, 2019 for “conduct involving accepting funds left at an ATM by a customer and not being forthcoming during the Firm’s investigation of the matter,” according to the letter of consent.